May 7, 2020 / 2:46 PM / a month ago

Turkish regulator slaps lira transaction ban on BNP Paribas, Citibank and UBS

ISTANBUL (Reuters) - The Turkish banking watchdog BDDK said on Thursday that it imposed a lira transaction ban on BNP Paribas, Citibank and UBS as they did not fulfill Turkish lira liabilities in due time.

“It has been decided not to make new or renew existing Turkish lira foreign currency transactions with foreign banks who default on lira liabilities including...BNP Paribas, Citibank and UBS,” the regulator said in a statement.

The lira transaction ban will include transactions with the banned banks’ group banks that operate in other countries, the watchdog said.

The watchdog said the transaction ban will be maintained until further notice.

Turkish lira which traded at 7.1415 at 1351 GMT after hitting its all time low firmed sharply immediately after the announcement.

UBS declined to comment.

Earlier, state-owned Anadolu news agency said Turkish regulators have launched legal action against London-based financial institutions over allegations they bought large sums of foreign currency and then defaulted on Turkish lira liabilities to weaken the currency.

Additional reporting by Oliver Hirt in Zurich; Writing by Ezgi Erkoyun; Editing by Daren Butler and Toby Chopra

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